Life After Ugandan Drilling

Iti-1 Completed and abandoned with a clear implication that GBP are not going to use any further resources in this area.

I am interested in what may happen in the shorter term. Based on current SP valuation 15/6/09 Global are £10.5m and what they do have available to them is approx. £13.5m and 25% of the EA5 Licence. I am ignoring the pending legal action and Leighton as I do not believe this will have any significance in the next 9-12 months.

Whilst there is substantial overlap with TRP I am taking a view they will keep the two companies separate as Namibia is LT and they will have plenty of exposure to Uganda via TRP anyway. Surely the GBP vehicle will have looked at a number of plays in the interim period which due to the unfortunate circumstances at Iti-1 could now be brought to the forefront. The question in my mind is which territories would appeal to management and how quickly they realistically may now move. For a number of months it has been said how many O&G plays have been depressed due to lack of funding, well GBP may be about to step up to the plate but where ?

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Global Petroleum Limited is an Australia-based oil and gas, upstream exploration company, which focuses on Africa and the Mediterranean. The principal activities of the Company consist of oil and gas exploration, development and production. The Company's principal assets are two exploration blocks located offshore Namibia. The Company's project includes Namibian Project. The Namibian Project holds interest in petroleum exploration license number 29 (License) covering Offshore Blocks 1910B and 2010A in the Republic of Namibia. The License covers approximately 11,730 square kilometers and it is located offshore Namibia in water depths ranging from 1,300 meters to 3,000 meters. It intends to seek license positions in frontier exploration areas in Africa and the Mediterranean, and potentially other frontier basins, either directly through license rounds, joint venture arrangements or acquisition. Its subsidiaries include Global Petroleum UK Limited and Jupiter Petroleum Limited. more »

after sitting on the fence yesterday with only 20k traded after the 4Q report & Jupiter news was released, they have burst into life today with what looks like the biggest volume by far for a long time down there with just shy of 3M traded & up 9% based on the last trade. I guess they just follow London rather than lead?

So the 2 Petes go from having 50% each of Jupiter to around 20% each (based on around 40mill shares each) via their GBP holding - but gain an indirect listing for same, which has given GBP's SP a bit of a kick (& saved them the hassle & expense of listing Jupiter).

Just came back from a holiday and saw a surprising jump in GBP share price. So I then read the RNS and found it a bit garbled. Realising that it might be an abreviated version of an ASX announcement I then read that version and found it far more clear on, for example, the sequences and their commitments in terms of the Namibian licenses, as well as providing plans showing the location.

However, neither announcement, afaics, gave the start date for the first four year exploration license period, which I suspect was the trigger for the sale, ie, I suspect the four years expires quite soon. This obviously pitches us straight into the two high cost license extensions if it is the case so we'd better get on with the "farming" asap. The other noticeable thing from the ASX announcement is that the license areas seem to cover deeper water than most, which presumably will make the drilling etc expensive, but isn't it water of this depth where the latest hydrocarbon predictive technology is most successful?

The Madagascar channel license looks quite promising from the small plan shown even though aiui detailed investigation there is sparse, as it looks almost like an extension to the Exxon licenses off Madagascar. But what I didn't like there was the partner. Unless my memory is failing, Wessex is yet another vehicle for Bramhill (of deserved Nighthawk infamy). If that is the case the license is worth sfa imho, as I can't imagine anyone giving Bramhill the money to work the license and his clearly demonstrated "purchasing skills" probably devalue the license in terms of potential buyers. Hope I'm wrong and someone big farms in soon to prove it rather than waiting for the license to lapse. Anyone know much about the prospects in that channel?
Regards.

However, neither announcement, afaics, gave the start date for the first four year exploration license period, which I suspect was the trigger for the sale, ie, I suspect the four years expires quite soon.

You are possibly wrong in that assumption. The 2010 map of Namibian Hydrocarbon Licenses (http://www.mme.gov.na/pdf/petroleum_licenses_01_2010.pdf) shows 1910B and 2010A as being vacant, so they may have been recently awarded. I've emailed the company to enquire, as it would be useful to know!

Hope you're right Peter, will watch out for confirmation one way or the other, when you get a reply.
Thanks for the response anyway, and let's hope the "vacant" designation wasn't caused by lack of activity and a short remaining license period!
Regards.

What do people think of the huge rise over the last few weeks since the two Peters swapped their Namibian acreage from Jupiter into GBP?

Yes it looks prospective acreage; Yes they have a large chunk of cash; Yes they have other interesting acreage;

As morality says it looks like small punters buying in based on comparative valuation of CHAR & TRP. Both over-valued imo.

I've been selling into the rises as the risk/reward has changed - from a 'safe-as-houses' company valuation entirely backed by cash with assets in for free into a more speculative investment. I still hold loads but will continue to sell into any rises.

Actually, as I type a few things occur to me - (1) It really was cheap when the Peters were buying back under 10p; (2) the assets are now being valued by the market wheras before they were being ignored; (3) the phrase 'safe-as-houses' is probably not what it used to be.

Mr Hill has extensive experience in the energy sector as a senior executive with a significant track record worldwide in high-level M&A and business development roles, primarily in the oil industry. Most recently Mr Hill was the global head of Corporate M&A for Statoil ASA, where he was responsible for several large transactions, being a key member of the team responsible for Statoil's merger with Norsk Hydro Oil & Gas in December 2006, and leading the acquisition of EnCana's Gulf of Mexico deepwater assets in 2005. Prior to agreeing to join Global, Mr Hill was responsible for supervising execution of the IPO of Statoil's Energy & Retail division in the latter part of 2010.

Previously Mr Hill set up the international business of Waterous & Co as Managing Director in the UK, and before that worked for Enterprise Oil plc for many years, latterly as Head of International New Ventures. Mr Hill started in the energy industry with Total Oil Marine and is a UK qualified Solicitor, having commenced his career with Clifford Chance. He holds an MA in Law from Oxford University.

Mr Hill's immediate focus will be to expedite the exploration of the highly prospective project located in Namibia upon completion of the acquisition by Global of Jupiter Petroleum Limited, which is expected to occur in late August 2011.

"Following interpretation of the historic seismic data, the Company commenced a 2D seismic survey of approximately 2,000 kms over its prospective oil and gas exploration blocks offshore Namibia. Processing and interpretation of the data from the new 2D seismic survey is expected to be completed by the end of the year."

I suspect the 35% rise since 21 Dec is in anticipation of the results of this 2D exercise being released an being quality ,